Unless you’ve been living under a rock, you’ll undoubtedly be aware that the Australian property market is booming.
Whether you’re a long-standing lover of Aussie real estate or have just recently got caught up in the frenzy, you would have heard the term “property cycles”. There is no doubt the market moves in cycles, and mistiming when you sell, can mean you are leaving money on the table.
Firstly, it’s essential to realise that right now; we are in a boom phase. During the boom phase, property prices rise at a rapid rate. Signs of a boom phase include:
- Rents are rising to levels that put pressure on tenants.
- Significant reduction in property selling time.
- A surge in property prices.
- Easily accessible financing for home loans or investment loans.
- Real estate is a trending topic in the media
- Reports on consumer’s increased home-buying intentions.
Historically we know that property prices double every 7-10 years. However, it does not grow in a steady and orderly line. The reality is during the 7–10-year cycle; we generally see a rapid boom phase of growth for 2-3 years. Selling at the wrong time can cost you six figures of equity.
So, when deciding to sell, the answer really relies on many things NIA can help you with during a strategy session.
- What do you need the money for?
- How is the property geared?
- Do we think that the property will rise in value?
- What are your financial goals?
- Could you invest your money better somewhere else?
Going through these questions will help you understand whether you should keep your property or if it is likely to be more beneficial for you to simply move on.
Surround yourself with a team of experts to assist in your decision making. It might save you thousands.
